Things are looking good for AVAX as the Avalanche ecosystem navigates through a sharp increase in hosted dApps. As a result, the Total Value Locked (TVL) in the ecosystem has grown exponentially to hit just under $14 billion.
This is happening despite a price drawback that has seen AVAX fall by 9% over a 24-hour period. However, this is not surprising considering that many other top cryptos, including Bitcoin and Ethereum, have experienced a price fall over the same period. It’s not yet clear whether this is short-lived or otherwise.
DeFi On Avalanche
Judging from the sharp increase in total value locked in the Avalanche ecosystem, it’s safe to say that the network is attracting new users. As a matter of fact, it appears that the blockchain network is experiencing an increase in the number of dApp projects hosted on it. This fact is revealed in a recent tweet sent out by Avalanche. Clearly, the ecosystem has been growing exponentially over the last few weeks.
Key among the factors that have led to this positive development is the proliferation of DeFi projects on the network. For one, Avalanche is predominantly a smart contract platform, making it ideal for DeFi projects. An increase in DeFi projects means more money flowing into the ecosystem and ultimately leads to a corresponding increase in the total value locked. Data from DefiLlama shows the sharp increase in the TVL within the Avalanche ecosystem. There’s a clear sharp uptick from the beginning of September to the end of November 2021.
What To Expect
Roughly two weeks ago, AVAX reached its all-time high in valuation, hitting $146. While this was partly fueled by the overall hype in the larger market back then, it was a defining moment for the Avalanche ecosystem.
Still, the current price of $112 is a tremendous improvement from the $2 dollar range posted by the crypto merely a year ago. With this kind of improvement, and if it holds, the Avalanche network could soon be among the top blockchain networks and DeFi platforms in the crypto space.